New Hampshire: An Emerging Market for Mid-Sized Industrial Properties

As institutional investors widen their scope in search of strong industrial returns, one state is quietly making waves: New Hampshire. Traditionally overshadowed by larger Northeast markets like Boston or Northern New Jersey, New Hampshire is now gaining attention as a high-potential hub—especially for mid-sized industrial assets between 15,000 and 120,000 square feet.

Here’s why New Hampshire is becoming an emerging market worth watching.

Here are the most frequent mistakes new CRE investors make—and how to avoid them.

Let’s break down how each metric works—and how to use them together to make smarter commercial real estate decisions.

Here are five key reasons why:

1. Strategic Location with Cross-Border Advantage

New Hampshire offers proximity to Boston and the broader New England corridor while providing distinct logistical and tax advantages:

  • Easy access to I-93, I-95, and Route 101

  • Close to Logan International Airport, the Port of Boston, and Manchester-Boston Regional Airport

  • No state sales tax or income tax on wages

For distributors and light manufacturers, this means lower operational costs and access to both urban and rural labor pools.

2. Growing Demand and Limited Inventory

Demand for small to mid-sized industrial space is outpacing supply, particularly in markets like:

  • Manchester

  • Nashua

  • Portsmouth

  • Concord

Vacancy rates are tight, and new construction is limited, making existing assets more valuable. This supply-demand imbalance creates strong rent growth potential and appeals to institutional investors looking for core-plus or value-add strategies.

3. Rise of E-Commerce and Localized Fulfillment

As next-day and same-day delivery expectations rise, New Hampshire is well-positioned as a last-mile logistics node for Northern New England. Companies are seeking regional distribution hubs that can serve Maine, Vermont, and Northern Massachusetts efficiently—often without needing massive million-square-foot facilities.

This creates a sweet spot for properties in the 15,000–120,000 SF range, offering institutional buyers a foothold in the evolving “micro-logistics” network.

4. Business-Friendly Environment

New Hampshire ranks high for:

  • Ease of doing business

  • Low tax burden

  • Stable regulatory climate

Local governments often welcome industrial development to stimulate employment and economic growth, providing smoother paths for permitting and site upgrades compared to more heavily regulated neighbors.

5. Appeal of Smaller Secondary Markets

Markets like Rochester, Dover, and Keene are gaining traction due to:

  • Lower acquisition costs

  • Strong workforce availability

  • Access to both urban and rural logistics routes

These secondary nodes present excellent opportunities for investors priced out of core markets but still seeking reliable tenant demand and resilient industrial fundamentals.

6.Underestimating Leasing & Vacancy Time

New investors often expect full occupancy shortly after acquisition. But leasing can take months—or longer—depending on location, condition, and tenant demand.

Tip: Build vacancy downtime into your pro forma and consider hiring a leasing broker who knows the local submarket

Final Takeaway

New Hampshire is quickly emerging as a strategic, cost-effective alternative in the Northeast industrial market. For institutional investors targeting mid-sized assets, the state offers:

  • Strong location fundamentals

     

  • Favorable tax and regulatory policies

     

  • Tight vacancies and upward rent trends

     

As capital continues flowing into secondary and tertiary logistics markets, New Hampshire stands out as a smart, under-the-radar play—especially for portfolios looking to diversify beyond traditional metro cores.